Prada’s relevancy appears to be slipping, and it’s not just the Saks shoppers that think so. Last month, Prada, which also owns Miu Miu, Church’s, and Car Shoe, announced a nine-month decline in net profit. Numbers dropped 27.6 percent to 319.3 million euros (around $427.8 million), compared with the 440.9 million euros, or $582 million, that was reported in 2013. Speaking about this slumping profit, Prada’s chief financial officer Donatello Galli declined to share a 2015 outlook with analysts, though he did say the brand was not expecting any short-term improvements. Prada is now planning on delaying, or even canceling, the opening of 80 stores that were slated to roll out in 2015.
In our very humble opinion, Prada is facing a two problems.
First is image. The image of Prada is matronly luxury, it is closely associated with maturity; like a brand you own after you reach a certain age. Even their quirky presentations (the glorious double-dyed fur shawl) gives the aura of maturity. There are too many competitors in this segment with which they’re competing such as Chanel which is a larger brand with a bigger marketing budget.
Second is the lack of iconic designs. Once again, Chanel has its quilt jacket and the double ‘C’ logo. Hermes has its birkin bag and is known for its subtle luxury presentation. Prada has none. Their inverted triangle logo looks outdated and the bag stamped with said logo looks archaic. They need an “it” bag, because we all know, in fashion, bags are where the money is.